Alberta’s economic recovery rockets ahead: RBC

Growth will remain above the national average this year and next, according to the bank's economic research team

Mario ToneguzziAlberta’s economic recovery is well in hand, according to a Provincial Outlook report released Monday by RBC Economic Research.

The financial institution said the province’s economy rocketed ahead by an estimated 4.2 per cent in 2017 after two years of recession in 2015 and 2016.

“We are expecting somewhat slower growth in 2018 and 2019 but at a pace above the national average,” said the report.

Alberta’s economy is forecast to grow 2.2 per cent this year and two per cent in 2019.

After three per cent growth in 2017, Canada’s overall economy is expected to slow as well to 1.9 per cent this year, followed by 1.6 per cent next year.

For Alberta, RBC said “rising oil production will add to growth and help with an eye-watering provincial deficit, and a pickup in jobs portends stronger growth ahead.”

“While the auspices are generally good for Wild Rose Country, a Statistics Canada survey suggesting that investment spending may drop in 2018 is a reminder that the economy has not fully righted. The province’s difficulty getting its oil to market may be affecting the investment outlook as highlighted by a widening spread between the price of Albertan oil and international benchmarks,” said the report.

Employment is expected to grow in Alberta by 1.5 per cent in 2018 and by 1.2 per cent in 2019.

Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.

albertaThe views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.

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